Commonwealth Bank of Australia (CBA), Westpac Banking Corp and Australia and New Zealand Banking Group, three Australian banks with total assets north of $2 trillion, are testing out IBM’s Lygon blockchain platform, aiming to make bank guarantee process quicker and more efficient.
Historically, bank guarantees have been issued manually and on paper. Digitising this process reduces the risk of fraud for all parties involved, decreases the potential for errors and significantly increases the speed of execution.
This new, digital process increases transparency and security through the use of blockchain technology while maintaining the privacy required in such a business process.
After the pilot, Lygon intends to offer access to the platform to all issuers, applicants, and beneficiaries and support broader use cases over time.